The USD is little changed to kickstart the North American trading day
The US dollar is little changed to start the North American session, with all of the major currency pairs trading within 0.15% of unchanged. Looking at the three most actively traded pairs—EURUSD, USDJPY, and GBPUSD—price action has been similarly subdued, with each pair moving less than 0.7% from yesterday’s close.
The USDJPY remains the standout after reaching a fresh 40-year high of 163.238 yesterday, extending above the previous July 1 high at 162.833. During Asian trading today, the pair briefly dipped to 162.80, but buyers quickly stepped back in, pushing the price back above the 163.00 level. It currently trades near 163.04, keeping the bullish trend firmly intact.
The EURUSD has been confined to a narrow 19-pip trading range today and continues to trade below its converged 100- and 200-hour moving averages at 1.14255. As long as the pair remains below those key technical levels, sellers retain the near-term technical advantage.
For the GBPUSD, the technical picture also favors the sellers. The pair recently fell below its 100- and 200-day moving averages, along with the 38.2% retracement of the rally from the June 24 low, all clustered near 1.3398. Today’s recovery stalled just shy of that resistance at 1.3395, reinforcing the bearish bias and keeping sellers in control.
UK inflation data was broadly in line with expectations, offering a mixed picture for the economy. Headline CPI slowed to 2.6% y/y from 2.8%, slightly below the 2.7% forecast, suggesting inflationary pressures continue to ease. Core CPI, however, held steady at 2.6% y/y, above the 2.5% estimate, indicating underlying inflation remains relatively sticky. Producer prices were weaker, with PPI Input falling 2.0% m/m versus an expected 0.7% increase, while PPI Output was flat at 0.0% m/m, slightly better than the -0.1% forecast but below the prior 0.3% gain. Meanwhile, RPI matched expectations at 3.0% y/y, down from 3.1% previously. Overall, the data point to moderating inflation pressures, although the resilience in core inflation may keep the Bank of England cautious on the pace of any future policy easing.
US stock futures point to a weaker open following yesterday’s gains, with the Nasdaq leading the decline. GE Vernova reported mixed quarterly results, missing EPS expectations while beating on revenue and raising its full-year outlook. Despite the improved guidance, the stock is down 6.56% in premarket trading.
The weakness has spread across the semiconductor and AI sector, with investors taking profits after the recent rally. Intel, which reports earnings after tomorrow’s close, is down 3.19% in premarket trading. Other notable decliners include AMD (-1.94%), Broadcom (-1.62%), Marvell (-2.63%), and Micron (-3.35%), with Micron giving back part of its sharp three-day rally from $80.40 to $99.20.
A snapshot of the major US indices shows:
- Dow -139 points
- Nasdaq -334 points
- S&P -43 points a look at some of the earnings
A look at some of the earning releases this morning shows:
Earnings Roundup
- Moody’s (MCO) – BEAT
- Adjusted EPS: $4.68 vs. $4.24 est. ✅ Beat
- Revenue: $2.22B vs. $2.08B est. ✅ Beat
- CME Group (CME) – BEAT
- Adjusted EPS: $2.99 vs. $2.91 est. ✅ Beat
- Revenue: $1.70B vs. $1.68B est. ✅ Beat
- Philip Morris (PM) – BEAT
- Adjusted EPS: $2.20 vs. $2.04 est. ✅ Beat
- Revenue: $11.20B vs. $10.61B est. ✅ Beat
- FY Adjusted EPS Guidance: $8.26–$8.41 vs. $8.41 est. ⚠️ In line at the high end, below at the low end.
- PulteGroup (PHM) – BEAT
- EPS: $2.48 vs. $2.36 est. ✅ Beat
- Revenue: $3.98B vs. $3.94B est. ✅ Beat
- AT&T (T) – BEAT
- Adjusted EPS: $0.65 vs. $0.59 est. ✅ Beat
- Revenue: $31.6B vs. $31.8B est. ❌ Miss
- FY Adjusted EPS Guidance: $2.25–$2.35 vs. $2.32 est. ⚠️ In line (midpoint $2.30 slightly below consensus).
- GE Vernova (GEV) – MIXED
- EPS: $2.47 vs. $3.19 est. ❌ Miss
- Revenue: $11.10B vs. $10.73B est. ✅ Beat
- Raised 2026 revenue guidance to $45.5B–$46.5B (prior: $44.5B–$45.5B), above the $45.45B consensus at the midpoint. ✅ Positive guidance.
In the debt market, US yields, they are marginally higher. The US treasury will auction off $16 billion of 20 year bonds at 1 PM ET
- 2 year yield 4.261%, Unchanged
- 5year yield 4.374%, +0.5 basis points
- 10 year yield 41634%, +0.6 basis points
- 10 year yield 5.138%, +0.7 basis points
In other markets,
- Crude oil is trading of $2.98 at $87.32
- Gold is trading up $38 or 0.95% have $4118.
- Silver is trading of $0.53 or 0.92% and $59.30.
- Bitcoin is trading down $441 at $65,941
In other news:
The Trump administration has approved a landmark 30-year civil nuclear cooperation agreement with Saudi Arabia that would allow U.S. companies to help develop the kingdom’s nuclear power industry. The pact is intended to strengthen the U.S.-Saudi strategic partnership, expand commercial opportunities for American nuclear firms, and provide Saudi Arabia with a civilian source of electricity as it seeks to diversify its energy mix beyond oil. The agreement will now be sent to Congress for a 90-day review period.
The deal has drawn attention because, unlike many previous U.S. nuclear agreements, it reportedly does not require Saudi Arabia to permanently forgo domestic uranium enrichment or adopt some of the strongest international safeguards. Supporters argue the agreement keeps Saudi Arabia aligned with the United States rather than turning to China or Russia for nuclear technology, while critics warn it could increase nuclear proliferation risks in the Middle East and potentially fuel a regional arms race, particularly given Saudi Arabia’s longstanding rivalry with Iran.
Middle East developments remained a key focus for markets. Shipping risks remained elevated as additional tankers rerouted away from the Red Sea following renewed Houthi threats. There is potential supply issues for oil if both the Red Sea and the Persian Gulf are not fully operational. Iran denied that the Pickaxe Mountain area is involved in nuclear activities after President Trump renewed warnings of potential military action, while the Islamic Revolutionary Guard Corps issued fresh threats of retaliation if U.S. attacks continue. On the diplomatic front, Israel and Lebanon are set to resume border talks in early August, and Iraq’s prime minister is scheduled to visit Tehran later this week. The ongoing geopolitical uncertainty continued to underpin crude oil prices as traders weighed the potential for further disruptions to regional energy supplies
This article was written by Greg Michalowski at investinglive.com.